Fable III will have episodic DLC

"I've often thought it would be brilliant to be walking through Charles Dickens' London. It was such a dark place and very episodic too – so we're doing that with Fable III," he told bit-tech.

"We'll give you the first big episodes, and you'll be able to download new episodes, which is analogous to the way Dickens wrote."

Talking about how the content will be offered, he added: "Some of the shops in Albion are linked to the internet and every so often populated by stuff from Lionhead. You don't have to go out to some horrible dashboard and download the Armageddon Pack 5."

Fable III is due out this autumn. So far Molyneux's talked about Touch and about becoming King, but apparently there's still one secret left to unveil, presumably at E3.

Whether that will be how Natal works with the game we'll have to wait and see.

"You still need a controller to play Fable III but there are places in the world where you can use Natal, where it's cute, funny, engaging. You don't need it but it does enable an enhanced Fable III, " Molyneux told bit-tech.

We talked to Peter Molyneux at GDC earlier this month, and previewed his new game in San Francisco a month earlier.